Tips and tricks to do before EOFY

By Larissa Waterson| 11 months ago

Boost your super and reduce tax bills before June 30

The end of the financial year for 2018 (EOFY18) is looming and it's a great chance to boost your superannuation.

Money Magazine’s Effie Zahos sat down with the TODAY Show to share some last minute tips on how savers can use their superannuation to boost funds and reduce tax bills.
“If you earn over $37,000 you’re going to pay tax of 34.5 per cent, that includes your medicare, simple as that,” Zahos told hosts Georgie Gardner and Karl Stefanovic.
“But if you put some money in your super before the end of this financial year, you’re only taxed at 15 per cent - that’s a big difference,” the money expert said.
“For example, if you earn 90,000 per annum, you say to your boss, put $10,000 straight into my super, you will save over $2,000 on that $10,000 and boost your super by a whopping $8,000.”
Consumers can get contributions from the government.
“This is known as ‘co-contribution’ - it’s a 50 per cent guaranteed return. So, pop $1,000 into your super fund, non-concessional, so after tax, and the government will pay up to $500 on that thousand. You get that if your income is over $36,800 and it phases out if you earn over $51,000.
In the world of finance, a spouse's contribution is the greatest gift of love, Zahos says.
“Not only is it a sign of commitment to your partner but it’s a tax perk which I like even better.”
“You get a $530 tax offset if you put $3,000 into your spouse's superfund.”
First time home buyers can also use their super to their advantage.
“This is a little secret that a lot of people don’t know about. This only applies to this financial year, it won’t happen again. So, right now you can put money into your superannuation fund to save on the deposit for your home and there are tax perks there because you are taxed at less and you also get more interest than an online saver account.
“Before June 30, if you put money into your super account now, they’ll calculate it as if you put it in at 1st July last year. So technically you can put some in and come the 1st of July you can withdraw it again.”
Zahos encouraged viewers to get in touch with their super funds if they have any questions.
“Call your super fund, you do get some basic financial advice for free.”